HSBC Malaysia launched $106.92 M New Economy Fund to support tech-driven startups
Tuesday saw the launch of HSBC Malaysia’s $106.92 million (MYR500 million) “HSBC New Economy Fund,” which aims to give high-growth, new economy businesses in Malaysia access to financing options so they can innovate and scale.
The fund was revealed at the bank’s second startup ecosystem development event in Malaysia, “Accelerating Sustainability through the Digital Economy – Shaping a Long-Term Future,” which was focused on the ecosystem’s growth.
The fund will primarily support lending to emerging startups and tech-driven companies that are pursuing opportunities in Malaysia’s expanding digital economy, according to a statement. These companies must be at least in the Series B stage. To support these companies at various stages of their lifecycles, HSBC will keep providing working capital, treasury management, payments, and cash management solutions.
Omar Siddiq, Chief Executive Officer, HSBC Malaysia said, “Malaysia is putting itself at the forefront of ASEAN’s thriving startup ecosystem with an emphasis on developing the country as a hub for high-performing businesses in the region. We are positive about the new economy in South and Southeast Asia and as a Group we are doubling down on our support for new economy players. We have invested $2 billion globally into Commercial Banking to improve our digital capabilities and to develop more solutions to support our clients.”
“We fully expect new economy businesses to play a more significant role in driving Malaysia’s economic growth and prosperity over the coming years. The ‘HSBC New Economy Fund’, which is a first of its kind in Malaysia, is focused on providing these high-growth, innovative companies with access to funding solutions so that they can continue the next stage of their growth”.
One of Malaysia’s long-term goals is the expansion of its startup ecosystem. The numerous government initiatives outlined in the Madani Framework, the New Industrial Master Plan 2030, and the Malaysia Startup Ecosystem Roadmap (SUPER) 2021–2030 are evidence of the commitment to support the growth of startups in the nation and place an emphasis on making Malaysia a vibrant digital nation. In order to advance the standing of Malaysian startups on the international stage, this includes offering improved funding, digitalization grants, and capacity-building programs.
Karel Doshi, Head of Commercial Banking, HSBC Malaysia added, “A key ingredient for tech-led businesses and emerging Malaysian startups to scale is the investment to grow. Beyond the incentives provided by the government, for startups to expand and succeed it is crucial to connect them to other parts of the world as well as bring other parts of the world to them – we know Asia very well and have been here for over 150 years”.
“The ‘HSBC New Economy Fund’ demonstrates HSBC’s support for the innovation economy in Malaysia and beyond. In addition to being a trusted advisor towards tech-led businesses and emerging startups, we have an unrivalled international network and a specially trained team to deal with startups – this places the Bank in a strong position to support emerging entrepreneurs of today who will spur the next generation of tech innovation companies that will be crucial to the development of the new economy landscape in Malaysia. We are also consistently looking for ways to collaborate with government agencies and ecosystem players to support Malaysia’s new economy ecosystem,” added Karel.
